Not at all - but maybe you should be a hooker if you think that.
She'll pay the sales tax when she buys at retail unles you think that everyone with unreported/evaded income has retail sources that will look the other way and NOT collect and forward the sales tax - which would require most retailers to chance their entire business just to help out that one sort of customer. That's ridiculous.
I certainly did not say the FairTax was an income tax, but that the income presently evading taxes will be taxed when spent - to the tune of 23% rather that a minor amount as at present.
So the Hooker is not avoiding paying Sales Tax by pocketing the full $130 she charges???? I fail to see how anyone can not comprehend this. It doesn't matter what she does with the money in the future, she has cheated the system and you have not increased you base to capture this part of the economy. You analysis is fraudulant.
pigdog wrote:I think you miss the point here pigdog. Always Right is pointing out that the so called "underground economy" will always be untaxed. Your flawed logic doesn't change that.
She'll pay the sales tax when she buys at retail unles you think that everyone with unreported/evaded income has retail sources that will look the other way and NOT collect and forward the sales tax
True, under the current system, it's the hooker who is evading taxes on her income. Under the so called "fair tax" system, it will be the john who evades taxes on the sale. But the fact remains that illegal activities won't be taxed under either system. You don't help your credibility by making claims that the fair tax will tax the "underground economy." By definition black market and illegal transactions don't get taxed under either system.
It makes people wonder why you have to exaggerate and distort your claims of advantages if this so called "fair tax" is really such a good deal. If it's really a good deal, it shouldn't be necessary to make up fictitious "advantages" that don't really exist.